Trump Tariffs Send Canadian Dollar Reeling Ahead of August Deadline

The Canadian dollar has come under renewed pressure as President Donald Trump's administration prepares to impose additional tariffs on Canada. A recent tweet from FOX Business White House correspondent Edward Lawrence confirmed that Trump spoke with Canadian Prime Minister Mark Carney about the planned tariffs, which are set to take effect at 12:01 a.m. on August 19. According to the report, the conversation between Trump and Carney produced no resolution that would prompt Trump to delay the measures.

The tariff threat is particularly significant because it includes 50% tariffs on a broad range of Canadian goods. This has led traders to reduce expectations for Bank of Canada rate hikes, adding another source of pressure on the CAD. The key question now is whether last-minute negotiations can produce a deal before the deadline.